Middle East Conflict Drives Oil Prices Above $100 a Barrel

The ongoing conflict in the Middle East has driven oil prices above $100 a barrel for the first time since May, putting pressure on global supplies. The US benchmark West Texas Intermediate rose almost 5% to $90.98 a barrel, while the global oil benchmark Brent jumped more than 6% to briefly touch $100.14 a barrel.

The European Central Bank (ECB) left interest rates unchanged at 2.25%, but warned of uncertainty around an energy price shock driven by the ongoing war in the Middle East. This has led to speculation that the ECB may hike borrowing costs this year, which could weigh on non-yielding assets like gold.

Gold prices have held above $4,000 a week after tumbling from its January record high, but traders are watching whether it can build enough momentum to challenge resistance near $4,200. If the US Federal Reserve hikes interest rates next week, this could push gold prices down further.